Baltic index falls for third week on weaker rates across vessels

LONDON : The Baltic Exchange’s main sea freight index dipped on Friday, marking its worst week in five months as demand for all vessel segments declined.

The index, which factors in rates for capesize, panamax and supramax shipping vessels, shed 18 points to 1,576 points and it fell over 11% for the week, marking its third consecutive weekly drop.

The capesize index fell 46 points to 2,276 points. The index fell over 18% this week.

Average daily earnings for capesize vessels, which typically transport 150,000-ton cargoes such as iron ore and coal, decreased $384 to $18,875.

The panamax index eased 3 points to 1,285 points and lost over 10% on a weekly basis.

Average daily earnings for panamax vessels, which usually carry 60,000-70,000 tons of coal or grain cargo, fell by $29 to $11,562.

Dalian iron ore futures prices fell on Friday to close the week lower, weighed by data showing continued weakness in China’s economy and steel market, although news of fresh measures from the top consumer’s central bank limited losses.

Among smaller vessels, the supramax index lost 4 points to 1,250.